bank and capital markets new issue review - week 37 · bank and capital markets new issue review 7...

Contents Section 1 Market backdrop 2

Section 2 Bank loan market 3

Section 3 USD public bond market 5

Section 4 GBP public bond market 9

Section 6 EUR public bond market 11

Contacts

United Kingdom

Luke Reeve

Tel: +44 20 7951 6548 Email: [email protected]

Chris Lowe


Gary Davison


Europe

Olivier Catonnet Tel: +33 1 5561 0535 Email: [email protected]

Jonathan H.M. Harfield Tel: +420 731 627 155 Email: [email protected]

Britta Becker Tel: +49 40 36132 20781 Email: [email protected]

Asia

Lynn Tho

Tel: +65 6309 6688 Email: [email protected]

David Chew

Tel: +65 6309 8085 Email: [email protected]

US & Canada

K.C. Brechnitz Tel: +1 704 335 4211 Email: [email protected]

Tony Ianni


Australia

Sebastian Paphitis Tel: +61 2 9248 4773 Email: [email protected]

Jason Lowe


Section 7 Private Placement market 13

Section 8 Ratings update 15

@EY_UKI

Section 9 Glossary 16

Section 5 ORB Retail bond market 10

EY Capital and Debt Advisory - New Issue Review 2

Market backdrop

Section 1: Market backdrop

Tenor 3yr 5yr 7yr 10yr 30yr

UK swap rate 1.20 1.50 1.71 1.90 2.13

Gilt rate 0.82 1.26 1.52 1.83 2.50

Tenor 3yr 5yr 7yr 10yr 30yr

US swap rate 1.13 1.52 1.91 2.21 2.69

UST rate 1.02 1.50 1.89 2.19 2.95

Source: Bloomberg

Source: Bloomberg Source: Bloomberg

Source: Bloomberg

► As expected, the Bank of England’s Monetary Policy Committee (MPC) opted to hold interest rates at 0.5% during last week’s committee meeting (vote of 8-1). Meeting minutes cite increased risks to the global economy, particularly from China, and an unchanged outlook for inflation as the rationale for their decision. The bank also reduced its growth forecasts for Q3 of 2015 from 0.7% to 0.6%, off the back of recent disappointing manufacturing and industrial production data.

► The Bank of International Settlements (BIS) reiterated concerns around the Chinese economy and its stock market sell-offs in recent weeks, as it released a report citing that capital outflows from the country represent “the release of pressure that has gradually accumulated over the years along major fault lines”. The BIS argues that emerging markets are particularly at risk of financial vulnerabilities, partly as a result of the low interest rates that have been in place across many major economies since the financial crisis.

► China has unveiled the much awaited guidelines for reform of its state-owned enterprises (SOEs) as the latest official data show its economy continuing to slow. Official news agency, Xinhua, stated “Guidelines suggest that by 2020, the SOE system should be more modernised and market-oriented. It should make for higher economic vitality, higher control, greater influence and SOEs will be more risk-resistant.”

► The Federal Reserve is scheduled to meet in the coming week, deliberating, amongst other things, the interest rate-setting. Due to the conflicting messages from the Fed over the past weeks, traders and analysts alike are split over whether it will tighten monetary policy. The lack of certainty may spark a sharp reaction should the Fed lift rates.

► Institutional investors are lending out more bonds and accepting increasing amounts of non-cash securities, according to a recent report (ISLA, 27 August 2015), which is raising concerns among some investors. The report shows the lending industry continuing to move towards sovereign debt (up 35% on last year), with 72% of these taken in return for non-cash collateral (up 61% on last year).

China unveils guidelines for stabilising and bolstering the economy whilst financiers are split ahead of the Federal Reserve interest rate meeting

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10-year Benchmark yields

10yr UST 10yr Gilt 10yr Bund

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Bank loan market


Section 2: EUR/GBP bank loan market

Source: Loan Connector Source: Loan Connector

► German automotive and industrial filter maker Mann+Hummel (NR, NR, NR) has launched a €400 million Schuldschein to back its acquisition of US-based Affinia Group via bookrunners ING Bank and LBBW, and co-lead arrangers are BNP Paribas and Deutsche Bank. The unsecured financing was done across 6 tranches of €67 million each, with 3-, 5-, 6-, 7-, 8- and 10-year maturities and met with a very positive response from investors, reflecting highly liquid market conditions.

► Hong Kong-listed Asia Satellite Telecommunications Holdings Ltd’s US$240 million five-year dividend recap facility has received eight commitments in limited syndication. The deal, which comprises a US$200 million term loan tranche A and a US$40 million revolving credit tranche B, agree in June, has now been signed.

► Canadian pharmaceuticals company Concordia Healthcare Corp (B2, B, NR) is backing its acquisition of UK-based AMCo with up to US$4.3 billion of term loans and bridge loans. Concordia is acquiring AMCo from private equity owner Cinven. The loans will fully fund the acquisition price and refinance all of AMCo’s existing debt as well as repay all of Concordia’s bank loans, and, if required, repay Concordia’s existing senior bonds. The term loans will be secured, while the bridge loans will be unsecured with the financing initially being provided by Goldman Sachs, Credit Suisse, RBC and Jefferies.

► US power producer Southern Co syndicated its US$8.1 billion bridge loan this week, in a deal lead by Citigroup. Proceeds from the bridge loan will back the company’s US$8 billion acquisition of AGL Resources Inc, which was announced August 24. The facility expires in 2016, and is priced at L+112.5bps. The deal creates the second-largest utility company in the US by customer base, with 11 regulated electric and natural gas distribution companies and about 9 million customers.

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European pricing grid - multiyear drawn

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EUR / GBP completed transactions greater than US$250m

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Lev - Vol. ($Bils.) IG - Vol. ($Bils.)

Lev - No. of Deals IG - No. of Deals

Issue date

Issuer Tranche rating (M, S&P)

Form Ccy Amount Maturity Margin (+bps)

Sector Ctry Leads

9-Sep Secure Income REIT NR, NR TL GBP 587 2023 - Real Estate UK -

8-Sep Dalian Wanda NR, NR RCF EUR 200 2020 - Real Estate CN -

8-Sep Dalian Wanda NR, NR RCF EUR 200 2020 - Real Estate CN -

7-Sep MANN+HUMMEL NR, NR OTH EUR 67 2018 E+125 Automotive DE ING, LBBW






Bank loan market


Section 2: USD Bank loan market

USD completed transactions greater than US$250m

Issue date

Issuer Tranche rating (M, S&P)

Form Ccy Amount Maturity Margin (+bps)

Sector Ctry Leads

13-Sep Computer Sciences NR, NR RCF USD 500 - - Technology US MUFG Union, RBC

13-Sep Computer Sciences NR, NR OTH USD 3,000 - - Technology US MUFG Union, RBC

9-Sep Asia Satellite Telecommunications

NR, NR RCF USD 40 2020 L+250 Telecommunications HK Various


NR, NR TL USD 200 2020 - Telecommunications HK Various


NR, NR TL USD 200 2020 L+250 Telecommunications HK Various


NR, NR TL USD 296 2020 - Telecommunications HK Various

9-Sep Central Java Independent Power

NR, NR TL USD 1,100 2035 L+210 Power & Utilities ID Various

9-Sep Olin Corp NR, NR TL USD 600 2018 L+150 Chemicals US SUM

9-Sep Sucampo Pharmaceuticals NR, NR TL USD 250 2021 - Life Sciences US JEFF

8-Sep Concordia Healthcare B2, B TL USD 4,000 - - Life Sciences CA Various

8-Sep Concordia Healthcare B2, B OTH USD 300 - - Life Sciences CA Various

8-Sep Rostelecom NR, BB+ TL USD 600 - - Telecommunications RU CDB, Huawei International

8-Sep Southern Co Baa1, A- OTH USD 8,100 2016 L+112.5 Power & Utilities US Citi

8-Sep Steiner Leisure NR, NR TL USD 600 - - Business Services US GSO Capital

7-Sep Saudi Arabian Mining Co NR, NR OTH USD 3,000 - - Mining & Metals ZA -

7-Sep Saudi Aramco Mobil Refinery

NR, NR OTH USD 5,000 - - Oil & Gas ZA -

USD public bond market


Domestic

Section 3: USD public bond market

Source: Reuters Source: Reuters

► US investment grade corporate bond markets were reinvigorated this week after Monday’s Labor Day holiday with borrowers exploiting demand ahead of the US Federal Reserve meeting. High-yield bankers, meanwhile, although currently subdued, remain optimistic for the remainder of the year.

► One large high-yield transaction was that of Frontier Communications (Ba3, NR, NR), the US-based telecoms provider which issued a US$6.6 billion three tranche bond to fund the acquisition of certain Verizon assets.

► In the investment grade space, US-based biotech company Gilead Sciences printed the biggest deal in two months as it led 11 corporate issuers in printing more than US$21 billion of deals, ranging from two year floaters to 100 year bonds, in the space of two days.

► Retailer Lowes (A3, A-, NR) followed its higher-rated rival Home Depot into the market with a three-part US$1.75 billion offering of fixed and floating rate notes. Lowes, sold a US$750 million 10-year fixed rate tranche at 125bps over Treasuries and a US$750 million 30-year tranche at 155bps over. It also sold a US$250 million three-year floater at 60bps over Libor, after dropping a fixed rate tranche of a similar duration.

► John Deere (A2, A, NR) issued a US$1.5 billion four part offering that racked up US$3.7 billion of demand and printed with a new issue concession of 3bps-8bps.

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Monthy US$ bond volumes

Domestic volume (US$) Cross-border volume (US$)

Cross-border number issued Domestic number issued

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USD secondary public bond spread 10-year

Avg. AA USD 10yr spreads Avg. A USD 10yr spreads

Avg. BBB USD 10yr spreads

Issue date

Issuer Tranche rating (M,S&P,F)

Form Amount (US$m)

Coupon Maturity Spread (T+bps)

Sector Ctry Leads

11-Sep Frontier Communications

Ba3, NR, NR SN 1,000 8.875% 2020 +736 Telecommunications US JPM, BAML, Citi





10-Sep American Airlines Baa3, NR, NR SN 239 4.400% 2023 +285 Industrials US Various

10-Sep American Airlines A2,NR, NR SN 239 4.000% 2027 +178 Transport US Various

10-Sep American Airlines Aa3, NR, NR SN 583 3.600% 2027 +138 Transport US Various

10-Sep Biogen Idec Baa1, NR, NR SN 1,500 2.900% 2020 +140 Life Sciences US BAML, GS

10-Sep Biogen Idec Baa1, NR, NR SN 1,000 3.625% 2022 +170 Healthcare US BAML, GS






Domestic (Cont)

Issue date


Form Amount (US$m)


Sector Ctry Leads

10-Sep Danaher A2, NR, NR SN 500 1.650% 2018 +65 Industrials US Various

10-Sep Danaher NR, NR, NR SN 500 2.400% 2020 +90 Industrials US Various

10-Sep Danaher NR, NR, NR SN 500 3.350% 2025 +115 Industrials US Various

10-Sep Danaher A2, NR, NR SN 500 4.375% 2045 +140 Industrials US Various

10-Sep Wyndham Worldwide Baa3, BBB-, BBB SN 350 5.100% 2025 +288 Hospitality & Leisure US BAML, GS, JPM

9-Sep Allina Health Systems Aa3, NR, AA- SN 250 4.805% 2045 +185 Life Sciences US Various

9-Sep Gilead Sciences NR, A-, NR SN 1,000 1.850% 2018 +80 Life Sciences US BAML, JPM






9-Sep Halcon Resources NR, CCC, NR SN 500 13.000% 2022 - Oil & Gas US -

9-Sep Kilroy Realty Baa2, BBB, NR SN 400 4.375% 2025 +225 Real Estate US Various

9-Sep Lowe's Cos I A3, NR, NR SN 250 Float 2018 - Consumer Products US BAML, JPM, SunTrust

9-Sep Lowe's Cos I A3, A-, NR SN 750 3.375% 2025 +125 Consumer Products US BAML, JPM, SunTrust

9-Sep Lowe's Cos I A3, A-, NR SN 750 4.375% 2045 +155 Consumer Products US BAML, JPM, SunTrust

9-Sep Marriott International Baa2, BBB, NR SN 450 2.875% 2021 +140 Hospitality & Leisure US JPM, US Bancorp, Wells

9-Sep Marriott International Baa2, BBB, NR SN 350 3.750% 2025 +170 Hospitality & Leisure US JPM, US Bancorp, Wells

9-Sep Marsh & McLennan Cos Baa1, A-, NR SN 600 3.750% 2026 +158 Business Services US Various

9-Sep Piedmont Natural Gas A2, A, NR SN 150 3.600% 2025 +138 Power & Utilities US BB&T, US Bancorp

9-Sep Targa Resources Partners

Ba2, BB+, NR SN 600 6.750% 2024 +464 Power & Utilities US Various

8-Sep Automatic Data Processing

Aa3, AA, NR SN 1,000 2.250% 2020 +75 Technology US Various

8-Sep Automatic Data Processing

Aa3, AA, NR SN 1,000 3.375% 2025 +120 Technology US Various

8-Sep Home Depot NR, A, A SN 500 Float 2017 - Consumer Products US Various

8-Sep Home Depot A2, A, A SN 1,000 3.350% 2025 +117 Consumer Products US Various

8-Sep Indianapolis Power & Light

A2, BBB+, BBB+ SN 260 4.700% 2045 +175 Power & Utilities US BAMl, US Bancorp




Domestic (Cont)

Issue date


Form Amount (US$m)


Sector Ctry Leads

8-Sep John Deere Capital A2, NR, NR SN 350 Float 2017 - Automotive US Citi, GS, HSBC

8-Sep John Deere Capital A2, NR, NR SN 500 1.750% 2018 +75 Automotive US Citi, GS, HSBC






Cross Border

Issue date


Form Amount (US$m)


Sector Ctry Leads

9-Sep Codelco A1, AA-, A+ SN 2,000 4.500% 2025 +250 Mining & metals CL BAML, HSBC, JPM

9-Sep Mallinckrodt B1, BB-, NR SN 750 5.625% 2023 +360 Life Sciences LU Various

9-Sep Pentair Baa3, BBB, NR SN 500 2.900% 2018 +188 Industrials LU Various



9-Sep Tyco A3, BBB+, A- SN 750 3.900% 2026 +180 Industrials LU GS, DB, MS

9-Sep Tyco A3, BBB+, A- SN 750 5.125% 2045 +220 Industrials LU GS, DB, MS

8-Sep Canadian Pacific Railway Baa1, NR, NR SN 300 4.800% 2035 +185 Transport CA Various

8-Sep Canadian Pacific Railway Baa1, NR, NR SN 900 6.125% 2115 +314 Transport CA Various

Issue date


Form Amount (GBPm)

Coupon Maturity Spread (G+bps)

Sector Ctry Leads

No significant transactions in the week

GBP public bond market


Section 4: GBP public bond market


Domestic

Cross-border

► No new issuance of note this week.

Issue date


Form Amount (GBPm)

Coupon Maturity Spread (G+bps)

Sector Ctry Leads


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ORB retail bond market


In the market

Recent Issues

Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)

Coupon Maturity Sector Country

Aug-15 Paragon Group of Companies

NR, NR, BBB- SSN 112.5 6.00% 2024 Finance UK

May-15 Wasps Rugby Club NR, NR, NR SSN 35 6.50% 2022 Sport & Leisure UK

May-15 Retail Charity Bonds NR, NR, NR SN 27 4.40% 2025 Real Estate UK

Apr-15 Provident NR, NR, BBB SN 50 5.13% 2023 Finance UK

Mar-15 Intermediate Capital Group

NR, BBB-, BBB- SN 160 5.00% 2023 Finance UK

Oct-14 Eros International NR, NR, NR SN 50 6.50% 2021 Media & Entertainment UK

Oct-14 A2D Funding NR, NR, NR SSN 150 4.50% 2026 Real Estate UK

Aug-14 Burford Capital NR, NR, NR SN 90 6.50% 2022 Finance UK

Jul-14 Golden Lane Charity NR, NR, NR SN 11 4.47% 2021 Real Estate UK

Jun-14 Ladbrokes NR, BB, BB SN 100 5.13% 2022 Leisure UK

Jan-14 Paragon NR, NR, NR SN 125 6.13% 2022 Finance UK

Dec-13 Premier Oil NR, NR, NR SN 150 5.00% 2020 Oil & Gas UK

Oct-13 A2Dominion NR, NR, AA- SN 150 4.75% 2022 Real Estate UK

Jul-13 Bruntwood NR, NR, NR SSN 50 6.00% 2020 Real Estate UK

Jun-13 Helical Bar NR, NR, NR SN 80 6.00% 2020 Real Estate UK

May-13 International Personal Finance

NR, NR, BB+ SN 70 6.13% 2020 Finance UK

Mar-13 Provident NR, NR, BBB SN 65 6.00% 2021 Finance UK

Mar-13 Paragon NR, NR, NR SN 60 6.00% 2020 Finance UK

Feb-13 EnQuest NR, NR, NR SN 145 5.50% 2022 Oil & Gas UK

Dec-12 Alpha Plus NR, NR, NR SSN 49 5.75% 2019 Education UK

Dec-12 UNITE NR, NR, NR SN 90 6.13% 2020 Real Estate UK

Section 5: ORB retail bond market

Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)

Coupon Maturity Sector Country

No issues in the market

EUR public bond market


► BMW followed a string of automotive issuers including American Honda and Toyota the previous week. The Company issued a fixed rate note of €1 billion and a floater of €500 million. Crédit Agricole, ING, JP Morgan, LBBW and MUFG gave initial price thoughts for the 3.5-year floater at 45bps-50bps over quarterly Euribor, along with initial thoughts of 75bps-80bps over mid-swaps for the 6-year fixed rate paper. The leads were able to revise those levels to guidance of 40bps area over quarterly Euribor and 65bps-70bps over mid-swaps.

► Citycon (Baa2, BBB, NR), the Finnish property company issued a €300 million bond of seven years with a final spread of 175 bps over mid-swaps. The proceeds will be used to partially fund the acquisition of Norwegian shopping centre operator Sektor. Citycon agreed to buy the company for €1.5 billion in May.

► Estonian power company, Eesti Energia (Baa2, BBB, NR) priced a €500 million rated deal at 160 bps. The Company, which is wholly owned by the Republic of Estonia was able to print at the upper end of its target range without moving the spread.

► ITV (Baa3, BBB-, NR) also joined the “pre-Fed rush”, raising €600 million for general corporate purposes, including refinancing a loan facility used to fund ITV’s acquisition of Dutch company Talpa Media. ITV acquired Talpa for €1.1 billion in March and used a €500 million 12 month bridge loan to help finance the deal.

Section 6: EUR public bond market


Domestic

Issue date


Form Amount (EURm)


Sector Ctry Leads

11-Sep Eni A3, NR, NR SN 750 1.750% 2024 MS+105 Oil & Gas IT Various

10-Sep Carmila NR, NR, NR SN 600 2.375% 2023 MS+170 Real Estate FR Various

10-Sep EDP Ba2, NR, BB SUB 750 5.375% 2075 MS+544 Power & Utilities PT Various

10-Sep Eesti Energia Baa2, NR, NR SN 500 2.384% 2023 MS+160 Power & Utilities EA BAR, DB, Nordea

9-Sep Daimler A3, NR, A- SN 500 Float 2017 - Automotive DE BAR, DB

9-Sep BMW A2, NR, NR SN 500 Float 2019 - Automotive DE Various

9-Sep BMW A2, NR, NR SN 1,000 1.125% 2021 MS+65 Automotive DE Various

8-Sep Citycon Treasury Baa2, BBB, NR SN 300 2.375% 2022 MS+175 Real Estate NL Various

7-Sep Iberdrola International Baa1, NR, BBB+ SN 500 1.750% 2023 MS+100 Power & Utilities NL Various

7-Sep Telefonica Emisiones Baa2, BBB, BBB+ SN 1,000 1.477% 2021 MS+98 Telecommunications ES Various

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EUR public bond market


Section 6: EUR public bond market

Cross Border

Issue date


Form Amount (EURm)


Sector Ctry Leads

11-Sep ITV Baa3, NR, NR SN 600 2.125% 2022 MS+162 Media & Entertainment UK BAR, JPM

10-Sep America Movil A2, A-, A SN 750 5.500% 2018 - Telecommunications MX DB

10-Sep Apple Aa1, NR, NR SN 1,000 1.375% 2024 MS+60 Technology US GS, DB

10-Sep Apple Aa1, NR, NR SN 1,000 2.000% 2027 MS+85 Technology US GS, DB

10-Sep Shell International Aa1, NR, NR SN 1,200 Floats 2019 - Oil & Gas UK HSBC, SG, DB

10-Sep Shell International Aa1, NR, NR SN 1,250 1.250% 2022 MS+67 Oil & Gas UK HSBC, SG, DB

10-Sep Shell International Aa1, NR, NR SN 1,000 1.875% 2025 MS+90 Oil & Gas UK HSBC, SG, DB

9-Sep DS Smith NR, NR, NR SN 500 2.250% 2022 MS+172 Consumer Products UK Various

Private Placement market


► U.S. EcoGen Polk LLC (NAIC-2) raised funds this week with a transaction of US$150 million of senior secured notes, due in 2042, with pricing expected to be in the 4.50%-5.00% region. The deal is to fund a biomass project to be built in Florida.

► Gator Power II Holdings LLC tapped the market via MUFG. The issue, viewed as an NAIC-2 (BBB-), involves a hydroelectric project in Louisiana. The deal was done as US$250 million of 5-year senior secured bullets, priced with a 4.08% coupon.

► Brookfield Utilities UK Ltd NAIC-2 (Baa2) came to market via Barclays/Citi/HSBC/NAB. The deal, which is only being offered to existing lenders, is for £100 million of senior secured notes, split into 12-, 15- and 20-year bullets. The notes are secured by capital stock in subsidiaries. In April 2014 the company last tapped the USPP market. That transaction was launched as £100 million of senior secured notes, split into 10- and 30-year bullets. That deal was three-times oversubscribed, and done as £100 million of senior secured 15-year bullets in two parts: £41 million of 15-year bullets, with a 4.61% coupon at G+145bps; and £59 million of 15-year bullets, swapped from dollars to sterling by the investors, with a 4.51% coupon, at G+135bps.

Section 7: US Private Placement market

Source: Private Placement Monitor Source: Bloomberg

Source: Private Placement Monitor Source: Private Placement Monitor

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US Treasury benchmark yields

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Date Issuer Ratings Form Amount (US$m) Coupon Maturity Spread (T+bps)

Sector Ctry

Sep-15 Gator Power II NAIC-2 (BBB-)

SSN 250 4.08% 5yr - Power & Utilities

US

Sep-15 Major League Baseball NAIC-1 (A-)

SSN

55.3 5.3

22.1 35.1

3.13% 3.45% 3.55% 3.75%

7yr 10yr 12yr 15yr

+130 +135 +145 +165

Media & Entertainment

US

Sep-15 Coram California Development

NAIC-2 (BBB-)

SSN 105 4.52% 17yr/13.47 avg - Power & Utilities

US

Aug-15 ClearBridge Energy NAIC-1 (Aaa)

SN 10 10 5

3.33% 3.60% 3.76%

7yr 9yr

11yr - Oil & Gas US

Private Placement market


Section 7: US Private Placement market

Date Issuer Ratings Form Amount (US$m)


Sector Ctry

Sep-15 U.S. EcoGen Polk NAIC-2 SSN 150 4.50%-5.00%

27yr - Power & Utilities

US

Sep-15 GSA NAIC-1 CTL 100 - 22yr, 13.5yr avg +150 Infrastructure US

Sep-15 Hudson Pacific Properties Inc

NAIC-2 (Baa3/BBB-)

SN 150 - 10yr, 12yr - Real Estate US

Domestic: In the market

Domestic: Issued

Cross Border: In the market

Cross Border: Issued


Sector Ctry



Sector Ctry

Sep-15 Brookfield Utilities NAIC-2 (Baa2)

SSN 100 - 12yr, 15yr, 20yr - Power & Utilities

UK

► Elli Investments Limited (Four Seasons Health Care, provider of health and social care services in the UK) downgraded to Caa3/negative from Caa1 by Moody’s

► Voith GmbH (Germany based mechanical engineering products manufacturer) lowered to Ba1/stable from Baa3 by Moody’s

► Crown Agents Bank Ltd (UK based bank) downgraded to BBB from BBB+ by Fitch

► Landshypotek Bank AB (French bank) lowered to A/stable from A+ by Fitch

Ratings Update

New and notable from rating agencies


The above list highlights ratings developments that we believe are interesting or noteworthy. This list is not exhaustive.

Section 8: Ratings Update

► Ephios Holdco II PLC (European Laboratory Operator) gets S&P B+ with stable outlook, extended from PE firm Cinven after acquisition

► Conwert Immobilien Invest SE (Austria based property investment company) gets S&P BBB- with stable outlook

► Andorra (small, wealthy and politically stable country) gets Fitch BBB with stable outlook

► Elering AS (Estonia based electricity transmission co) upgraded to A2/stable from Baa1 by S&P

► Tightening EU regulation through 2020-2021 to push automakers to continue to innovate and change their product mix to include more alternative-fuel vehicles and optimize thermal combustion engines (S&P)

► European real estate companies to continue to benefit from low interest rates in the next couple of years, based on economists' forecasts for European Central Bank and Bank of England base rates, combined with good level of interest rate hedging practiced by these cos (S&P)

► European auto parts suppliers to offset slowing growth rates in China as benefits from geographic diversification and an improved product mix to allow many to outperform the global light vehicle production by more than 2.0% for 2015

► Shifting political winds are disrupting some plans for U.S. infrastructure projects (PPP), even though it is known that increased spending is needed to build and repair the country's roads, bridges, and tunnels (S&P)

► Global property and casualty (P/C) reinsurance sector got an "intermediate" insurance industry and country risk assessment (IICRA) score. It is based on assessment of weighted average views of "low" country risk and "moderate" industry risk for the sector (S&P)

Key

New ratings

Negative rating actions

7 September – 13 September 2015

Positive rating actions

Trends in financial markets and industry sectors

Asset-backed securitization ABS Not rated NR

Commercial mortgage-backed securitization CMBS Other loan OTH

Deep discount bond DDB Revolving credit facility RCF

Energy savings performance contract ESPC Senior note SN

First mortgage bonds FMB Senior secured note SSN

London interbank offered rate LIBOR Subordinated note SUB

Medium-term note MTN Term loan TL

ABN Amro ABN Jefferies & Co. JEF

Bank of America Merrill Lynch BAML JP Morgan JPM

BBVA Securities BBVA KBC Capital Markets KBC

Bank of Tokyo Mitsubishi UFJ BOTM Landesbank Hessen-Thueringen LBHT

Banco Santander SA SANT Lloyds Capital Services Ltd LCS

Bank of New York BNY Lloyds Banking Group LBG

Bank of Egypt BoE Banca March MAR

Bank of Nova Scotia BNS Mega International Commercial Bank Co Ltd MICBC

Bank of the West BoW Mitsubishi UFJ Financial MIS

Barclays Bank BAR Mizuho Financial Group Inc MIZ

BayernLB BLB Morgan Stanley MS

BMO Capital Markets BMO Natixis NAT

BNP Paribas Group BNP Norddeutsche Landesbank GZ NLB

Capital One Bank COB Nomura NOM

Calyon CAL PNC Capital Markets PNC

CIBC World Markets CIBC Rabobank RAB

Citi Citi RBC Capital Markets RBC

Commonwealth Bank of Australia CBA Raiffeisen Bank International RBI

Commerzbank AG CZB RBS RBS

Crédit Agricole CA Société Générale SG

Credit Suisse CS Scotia Capital Inc SCA

Deutsche Bank DB Standard Bank Plc SB

DnB NORD DnB Standard Chartered Bank STA

European Investment Group EIG National Bank of Egypt STET

Fortis Securities Inc FOR SRM Robinson Humphrey SRH

Goldman Sachs & Co GS Sumitomo SUM

HSBC HSBC UBS UBS

Itau BBA IBBA UniCredit Group UNI

ING Groep NV ING U.S. Bancorp USB

Intesa Sanpaolo SA ISP Wells Fargo Wells

Incapital LLC INC WestLB WLB

Banca IMI IMI WestPac WP

Glossary Technical abbreviations

Financial institution abbreviations


Section 9: Glossary

EY | Assurance | Tax | Transactions | Advisory

Ernst & Young LLP

© Ernst & Young LLP. Published in the UK. All Rights Reserved.

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Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

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